How can I either remove a co-signer from my car loan or transfer the car loan to another individual?

Question

So I have a co-signer on my car and I was planning on getting a new one. Good news is, I have someone who is willing to make the payments. They are super cheap payments because me and the co-signer got a great rate. Bad news is, co-signer doesn't want their name on the loan if I give it to this trusted person. So. How in the hell do I get the co-signers name off the car loan? PLEASE HELP!

Answer 1

You can't. Everything stays as it is until the loan is paid in full. There is no "transferring" your loan obligation to someone else. They would have to pay off your existing loan and you would then be able to transfer ownership to them.

Answer 2

First and foremost, you cannot transfer a loan to someone else. Just not possible. Second, unless you go through the application process and get approved for a new loan by yourself, you can't remove a cosigner.



Now that we have that out of the way, please understand that if your mother in law wants to buy the car, she needs to get approved for a loan in her name only. The rate her credit qualifies her for is the rate she will get. Not sure if she can do this, though, as you said that she "has paid off her house, paid off her other car and wants another", but also said "does not have any credit to get her own loan". Either way, the rate you and the cosigner got, and the "super cheap payments" that stem from that rate are completely and totally irrelevant. Her credit will dictate her rate.



Your vehicle will need to be paid off in full, so that the title can be transferred. If she can't get approved for the total amount owed, then your mother in law will have to pay the remainder out of pocket, up front. Again, you cannot transfer the title with a lien on it.



If you're thinking that you might let her drive the car and make the payments, don't. First, all legal liability is still yours. The registration will still be in your name, and she cannot obtain insurance for it, as she has no "insurable interest" in the car. Also, it is highly unlikely that you would be approved for a second auto loan without the first one being paid off. Having her make the payments while being the sole operator is considered subletting, and is strictly forbidden in your contract. They can repossess your vehicle for this. In addition, if she's in an accident, the insurance company can refuse to cover it. There are no benefits to this.

Answer 3

How?



By finding a lender who is willing finance the car solely in your name. Yup, it's that simple... if you now qualify.

Answer 4

"I have someone who is willing to make the payments." That statement troubles me for even Santa Claus is not that Generous. Why should ANYONE want to pay for anything for you? Reads like "Elder abuse." Grandma or grandpa aren't right upstairs and you are taking advantage of them by robbing them.

What you want you can't do without the cosigner signing out, releasing them from the Loan. But they will know right away who you are trying to screw over...their parents. Not going to happen. Can lead to jail time...for you. Theft is theft.

Answer 5

Make sure your own name is off the car too, don't do anything that requires you to trust the buyer because they can screw you over the same way you could mess things up for your cosigner.



Anyway, your lender must approve anything that happens with that loan. The buyer has to be able to qualify for credit on their own, and that sweet deal you got may not be available to them.

Answer 6

You either have to refinance in your own name alone or let the new buyer get their own loan and you pay off yours from the sales proceeds. You can't transfer a loan to another person. Doing what you propose leaves you on the hook for payment if the buyer doesn't make them and also leaves it on your credit report, which may prevent you from getting a loan for your new car due to your debt to income ratio.

Answer 7

It does not work that way. The ONLY way the cosigners name is coming off is if the loan is paid in full.



You cannot transfer payments to someone else.

Answer 8

A co signer only signs and agrees to make the payments if you don't on the loan. They do not own the car so if you can get a loan in your name then what is the problem. If you needed a co signer in the first place then its because you don't have credit or poor credit.

Answer 9

Ask at your local motor vehicle agency. The rules differ from one place to another and no one here knows where you are. This is a global site. I am in Nepal.